What is a fixed-term contract?
A fixed-term contract ends on a set date or event; since 2023 there are limits of generally no more than two years or two consecutive contracts.
A fixed-term contract is an employment contract that ends on a specified date or when a specific task or season finishes. The employee is engaged for a set period rather than on an ongoing basis.
Since the limits commenced in December 2023, an employer generally cannot engage an employee on a fixed-term contract for more than 2 years (including extensions), or use more than 2 consecutive fixed-term contracts for the same role. Several exceptions apply — such as specialised skills, training arrangements, high-income employees, and government-funded positions. Employers must also give the employee a Fixed Term Contract Information Statement.
Key facts
- •A fixed-term contract ends on a set date, or when a task or season is completed
- •Limits commenced in December 2023: generally no more than 2 years or 2 consecutive contracts
- •Exceptions exist for specialised skills, training, high-income earners, and certain funded roles
- •Employers must give a Fixed Term Contract Information Statement from the Fair Work Ombudsman
- •A prohibited fixed-term term has no effect, and the contract may become ongoing employment
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Can my employer keep renewing my fixed-term contract?
Generally no. Since the 2023 limits, an employer usually cannot use more than 2 consecutive fixed-term contracts, or a contract running longer than 2 years, for the same role — unless a specific exception applies.
What happens if a fixed-term contract breaches the rules?
The term that limits the contract to a fixed period has no effect, so the employment can continue as ongoing. The rest of the contract still stands, and disputes can be raised with the Fair Work Commission.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.